What is the proper interpretation of this statement

Assignment Help Accounting Basics
Reference no: EM13505671

The 10-Q report of ABC Bank states that the monthly VAR of ABC Bank is USD 10 million at 95% confidence level. What is the proper interpretation of this statement?

A. If we collect 100 monthly gain/loss data of ABC Bank, we will always see five months with losses larger than $10m.
B. There is a 95% probability that the bank will lose less than $10m over a month.
C. There is a 5% probability that the bank will gain less than $10m each month.
D. There is a 5% probability that the bank will lose less than $10m over a month.

Reference no: EM13505671

Questions Cloud

Which statements is an accurate description of var : Worse-than-VAR scenarios are defined as scenarios that lead to losses in the extreme left tail of the return distribution equal to or exceeding VAR at a given level of confidence. Which of the following statements is an accurate description of VAR..
Audit the locom inventory reserve balance : Was sufficient audit evidence obtained to verify and support the recorded LOCOM inventory reserve balance - what additional audit procedures, if any, could be performed to obtain appropriate evidence to audit the LOCOM inventory reserve balance?
What is the resistance of the new cord : A certain electric extension cord has a resistance of 4.96 ?. Suppose it is replaced by an extension cord made of the same material. What is the resistance of the new cord
Calculate the var and expected shortfall : Given the following 30 ordered percentage returns of an asset, calculate the VAR and expected shortfall at a 90% confidence level: -16,-14,-10,-7,-7,-5,-4,-4,-4,-3,-1,-1,0,0,0,1,2,2,4,6,7,8,9,11,12,12 ,14,18,21,23.
What is the proper interpretation of this statement : The 10-Q report of ABC Bank states that the monthly VAR of ABC Bank is USD 10 million at 95% confidence level. What is the proper interpretation of this statement?
Not-for-profit organization analysis : identify criteria for evaluation of the mission statement, measure achievement, and offer a conclusion on the evidence presented.
Prepare a flexible budget performance report for july : Is the above variance report useful for evaluating how well revenues and costs were controlled during April? Why, or why not - Prepare a flexible budget performance report for July
Prepare forecasts of income statement and balance sheet : Prepare forecasts of its income statement, balance sheet, and statement of cash flows for 20x7 - All financial ratios remain at 20x6 levels.
Explain what reactants are needed to make bromocyclohexane : What reactants are needed to make bromocyclohexane into cyclohexanol without producing any (or very little) cyclohexene

Reviews

Write a Review

Accounting Basics Questions & Answers

  If the current rate of interest on comparable debt is

a bond has the following features coupon rate of interest 8 principal 1000 term to maturity 10 yearsa. what will the

  The different stages of a bid-rigging scheme

Jones is the manager for ABC Auto Repair. Unknown to his employer, Jones also does freelance auto repair work to earn extra cash. He sometimes uses ABC's facilities and tools for these jobs. Discuss the costs and potential costs that ABC might ..

  Prepare the journal entries required to create

Spoiled Baby Corp (SPC) sells baby buggies. Recent changes in the law required SPC to warranty its products for 90 days and you must set up the required accounts. Historical Data indicates that 6% of monthly sales result in warranty claims. The Ju..

  Amounts of the company shareholders equity

List the accounts and amounts of the company's shareholders equity.

  What is the realized gain and recognized gain

On December 31, Year 5, Tasha sold the property for $102,000, after having taken $47,525 in MACRS depreciation deductions. What is the realized gain, recognized gain and character (1231 (capital) v. ordinary)?

  Net cash flow from disposal

At the end of the 4 years, the equipment is sold for $6,000 when the tax basis of the equipment is $4,500. Income tax rate is 35%. The net cash flow from disposal is ?

  Paid income taxes during for the year

The deferred tax liability classified as noncurrent that resulted from the use of MACRS for tax purposes and straight-line depreciation for financial reporting purposes, increased from $40,000 at the beginning of the year to $44,000 at the end of ..

  Record sales and collections during the period

Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period. Prepare the entries to record the recovery of the uncollectible account during the period.

  Standards for direct labor and direct materials

Describe the procedures Jeff should use in setting standards for direct labor and direct materials.

  Problem related to inflate sales

Which scheme does not inflate sales? A) Recognizing sales on disputed claims against customers. B) Recognizing sales without shipping the goods. C) Understanding allowances for sales discounts.

  Permanently restricted resources not for profit accounting

Provide examples of resources that are temporarily restricted as to: (a) purpose; (b) time; and (c) the occurrence of a specific event. Provide an example of permanently restricted resources. not for profit accounting.

  Accrual verses cash flow

The Water Fun Store is a retailer of water sports products forbackyard swimming pools. During August, the firm had the following operating activities:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd